Nine expert tips on how to buy and sell a house at the same time without any stress

Selling and buying a house at the same time is a daunting task, even for the most seasoned homeowners. The current housing market situation in Canada is making it more challenging, with the house prices going way beyond reasonable.

There are challenges you have to face as a seller and a buyer at the same time. Based on the Canadian Real Estate Association's (CREA) statistics in June 2022, the home sales slowed down and are now back to the pre-pandemic level.

However, the market situation does not mean you can't do anything. While you might not sell your house that fast, it also means the housing inventory is high, which widens your options of homes to buy.

Here are nine helpful tips to ease the stress of buying and selling your home simultaneously:

1. Check for a Sell and Rent-Back option

In some cases, buyers may agree to a rent-back clause where you can sell your house and rent it back from the buyer. If the buyer agrees, you can continue living in your house and pay rent. This will give you extra time to find a place or if there are delays in the purchase of a new home.

If you sold your house to an investor, you could try to negotiate for a longer lease term and affordable rental payments.

You can also request an extended closing as part of your purchase offer. Some buyers may want to move in immediately but can try asking to have time to sell your house.

2. Consider short-term housing

You might want to consider finding temporary housing. If you can squeeze in with friends or family, you're lucky. If not, check furnished apartments and vacation homes that offer month-to-month rentals. You can rent a storage unit to hold all your furniture and belongings while waiting to move into a new home.

 3. Sell your house first and buy one later

Sometimes, it will make sense to sell your home before buying the house you have in mind. Selling before purchasing a new house has advantages, including having cash from the sale, which places you in a better position to buy your next home with cash. You can also wait for house prices to lower before purchasing and avoid having two mortgage payments simultaneously.

On the downside, you might have to spend more money paying rent for temporary housing and storage for your furniture and belongings. Home prices could increase before a seller accepts your offer, and interest rates may increase.

In buying and selling a house simultaneously, your mortgages could overlap. Assess your budget and see if you can afford to pay both. You might be required to pass Canada's mortgage stress test.

4. Get your home ready for selling

How ready is your house to be put on the market? You have some preparations to do ahead of time before listing. Preparing your home will reduce the time your house will sit on the market. Usual preparations include:

• Cleaning and decluttering the common areas of your home.
• Fixing structural problems.
• Adding fresh paint.
• Making necessary renovations and upgrades. 

5. Prepare your paperwork ahead of time.

File and get your paperwork early. Collect all the necessary documentation, including upgrade and renovation permits, repair records, warranties for appliances, and others, so you can answer any questions a potential buyer might have. You may need those documents to secure a mortgage to buy a home.

6. Add conditional contracts

There is no guarantee of selling your home fast. You can add certain conditions on your purchase offer, like an option where you can cancel and walk away in case you haven't or were unable to sell your previous home.

This method is not fail-proof. You can delegate the task of handling the details and negotiations on your behalf to a real estate agent.

7. Prepare to compromise

Selling your home and buying a new one can be stressful, especially if you're trying to do it simultaneously. You don't have to have every tiny little detail done perfectly. Allow some room to compromise, and don't overstress yourself in selling your house and searching for a new one.

8. Get ready for non-traditional methods

There are no predictable rules in real estate trends. Every transaction is unique. You might have to go through nonconventional ways of selling your house, like For Sale by Owner, trade, online auction, or a raffle. Some factors can influence market trends, like the season. More homes sell in the Spring, but this depends on your location.

9. Consult the professionals early on

Seek help early on. Your local real estate agents can advise on what to do right from starting to closing a deal on your new home.

Bottom Line

When selling and buying a home at the same time, it is essential to be organized, have a plan, and be prepared for potential bumps in the road. The expert tips in this article can help you successfully navigate selling and buying a home simultaneously.

Call us today and let a real estate agent make the experience of buying and selling a home smooth and seamless.